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Fannie Mae Vs Freddie Mac Waiting Periods For Derogatory Credit FANNIE MAE FREDDIE MAC Waiting Period Waiting Period Waiting Period Waiting Period with Requirements with Extenuating Requirements Extenuating Circumstances Credit Score 680 Circumstances

Derogatory Event Bankruptcy Chapter 7 or 11 Bankruptcy Chapter 13 Multiple Bankruptcy Filings Foreclosure

4 years

2 years

4 years

2 years

2 years from discharge date • 4 years from dismissal date 5 years if more than one filing within the past 7 years 7 years

2 years from discharge date • 2 years from dismissal date 3 years from the most recent discharge or dismissal date 3 years 3 years up to 7 years: • 90% maximum LTV ratios • Purchase, principal residence • Limited cash-out refi, all occupancy types

2 years from discharge date • 4 years from dismissal date 5 years if more than one filing within the past 7 years 5 years

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2 years from discharge date • 2 years from dismissal date 3 years from the most recent discharge or dismissal date 3 years


Deed-in-Lieu Preforeclosure Short Sale

• • •

2 years – 80% maximum LTV ratios 4 years – 90% maximum LTV ratios 7 years – LTV ratios per the Eligibility Matrix

2 years – 90% maximum LTV ratios

4 years

2 years

Additional Fannie Rules: The maximum LTV ratios permitted are the lesser of the LTV ratios in this table or the maximum LTV ratios for the transaction per the Eligibility Matrix.

Additional Freddie requirements for Financial Mismanagement – but you may see this for Fannie too: • •

Must re-establish credit 24 months – must have housing payment history Must be current on all credit (12 months) o No new derogatory public record o No 60 day lates o No more than 2 30 day lates o No housing lates o Limited revolving debt utilization Borrower Explanation leading to reasonable conclusion that borrower has re-established an acceptable credit reputation

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